Potential elimination of U.S. import taxes on Indian products by November 30, as announced by the Chief Economic Advisor.
Published on September 18, 2025
During an event organised by the Merchants' Chamber of Commerce & Industry (MCCI) in Kolkata, the Chief Economic Advisor of India, V Anantha Nageswaran, expressed confidence that a resolution to the ongoing tariff dispute between India and the US could be reached in the next couple of months.
Nageswaran stated that he anticipates a reduction in the reciprocal tariff from 25% to 10-15% if the tariff dispute is resolved. This optimistic outlook comes as a result of his intuition, not concrete indicators or evidence.
In August, an additional 25% tariff by the US on Indian products for purchases of Russian oil came into effect, bringing the total amount of levy imposed on India to 50%. However, Nageswaran highlighted that despite these tariffs, India has already achieved 50% of its exports to the US compared to the previous fiscal's figure.
On the domestic front, Nageswaran expects India's GDP growth momentum to be maintained in the second quarter, with a growth rate of 7-7.1%. This prediction follows a robust 7.8% growth rate in the first quarter.
The resolution of the tariff issue could potentially lead to a significant increase in trade between India and the US. If the tariff resolution happens, the trade between the two countries may surpass the previous fiscal's figure. However, if the tariff continues, it may fall short by around 30%.
Key U.S. government officials who could be responsible for resolving tariff disputes between the USA and India next month likely include the U.S. Trade Representative, the Secretary of Commerce, and potentially the U.S. Secretary of State or the Treasury Secretary, given their typical roles in trade negotiations and economic diplomacy.
Nageswaran also expressed hopes for a resolution to the penal import tariff on Indian goods by November 30, which the Trump administration is currently considering scrapping. The Chief Economic Advisor's optimistic statements provide a positive outlook for the future of trade relations between India and the US.
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